Enhancing Tourism Villages Through VRIN Resources and Local Endorsement: A Resource-Based View on Achieving Sdgs in Rural Development

Abstract

Objective: This study aims to analyze the influence of local endorsement on VRIN resources as part of the resource-based view (RBV) framework, which together with non-VRIN resources influences competitive advantage and then BUMDes performance.   Theoretical Framework: The RBV framework is often used to look at resources that influence a company's competitive advantage, which then affects business performance. In this study, the adoption of psychological empowerment as part of the Rural Empowerment through Tourism Scale is used to measure citizen involvement in the form of local endorsement.   Method: The study used a quantitative approach with purposive sampling to obtain 657 research respondents according to the established criteria. Online questionnaires were used to be distributed to various BUMDes in Indonesia.   Results and Discussion: The results of the study show the influence of local endorsement on VRIN resources, which then also affects competitive advantage. Competitive advantage affects BUMDes performance. The results of the study also show that non-VRIN resources do not affect competitive advantage. These results emphasize community involvement in generating competitive advantage for BUMDes-managed tourist villages.   Research Implications: The results of the study show the importance of focusing on intangible assets to develop tourist villages. Building local endorsement is a way to encourage local communities to be involved in managing tourist villages through BUMDes.   Originality/Value: The adoption of the psychological empowerment concept from RETS provides a new direction in the context of developing competitive advantages in tourist villages, especially from the perspective of local communities.